myRA will end in September 2018

All open myRA® accounts will be closed and balances moved to new Roth IRAs at Retirement Clearinghouse, LLC (RCH) if no action is taken. Learn more

myRA Phase Out Update

Important notice: Take action soon if you do not want your myRA account transitioned to RCH

If you would prefer to withdraw your myRA account balance or transfer your account balance to another Roth IRA instead of having your account balance transitioned to RCH, you must act soon. The deadline for completing these actions is August 31, 2018. Because there is lead time needed to complete certain actions, in some cases the deadline for submitting requests to myRA is August 17, 2018.

For two years, there will be no account maintenance fees or fees associated with withdrawals, transfers, or the closure of your RCH account. RCH will also take over customer service responsibilities related to your soon-to-be closed myRA account, such as providing you with applicable tax forms, even if you close your account prior to the transition to RCH.

The myRA program is being phased out, but you have options to continue saving

Your options:

You have options to continue saving after myRA has ended. You should consider your options and decide what you want to do with your myRA account:

Transition your account balance to RCH. You do not need to take any action. Your account balance will be transitioned to a new account at RCH that will open on September 17, 2018.

Transfer your account balance to another Roth IRA of your choosing. To initiate a direct transfer of your full account balance to another Roth IRA, you will first need to identify a different Roth IRA provider and open an account with them. You should then follow the process outlined by your new Roth IRA provider to transfer your myRA account balance to your new Roth IRA account. The deadline for a transfer request to be submitted to myRA is August 17, 2018.

Make a full withdrawal from your account. You can withdraw your myRA account balance by signing into your account online and requesting the balance to be deposited into a checking or savings account that you have linked to your myRA account. The deadline for you to submit a request to deposit your balance into your checking or savings account is August 31, 2018. You can also request a check by calling myRA customer service, provided you do so by August 17, 2018. Furthermore, all checks must be cashed or deposited by September 7, 2018.

Saving for retirement is an important activity, and a Roth IRA can be an excellent way to save. If you choose the first or second option above, you will maintain the Roth IRA benefits of your myRA account. If you choose the third option above, you may lose those benefits and instead face tax liabilities and penalties. To avoid this outcome, you can typically roll over the withdrawn funds (as well as any amount withheld by myRA account for tax purposes) into another Roth IRA you have opened. You must do so within 60 days of receiving the withdrawal. See myRA.gov/roth-ira for more details.

Finally, you should log in to your account to make sure your contact information is complete and up to date, so that you receive letters and emails about the transition. You can also update your information by contacting myRA customer service.

Important dates to know:

Friday, August 17, 2018

This is the last day to request a transfer of your account to another Roth IRA.

This is the last day you can request a withdrawal to be paid by check, which requires a call to myRA customer service.

Friday, August 31, 2018

This is the last day you can request a withdrawal to be paid electronically into your checking or savings account.

This is the last day the myRA account access site will be available.

Friday, September 7, 2018

This is the last day you can cash or deposit any withdrawal check you have received.

Friday, September 14, 2018

This is the last day that myRA customer service will be open.

The process of closing myRA accounts and transferring balances to RCH will occur over this weekend.

Monday, September 17, 2018

On this date, RCH will open new accounts to replace the myRA accounts.

As this schedule shows, there will be a period during which you will be temporarily unable to access your account balance or request a withdrawal while your myRA account balance is moved to a new account with RCH.

About the new RCH accounts:

Below is some additional information about your new RCH account.

Default investment in the Federated Government Obligations Fund: Your myRA account balance will be moved to your new RCH account and invested in the private sector Federated Government Obligations Fund (also known as GORXX). Although it is designed to be a low-risk investment, your principal will not be guaranteed. This means it is possible for your account to decrease in value. GORXX will serve as the default investment for any funds that move from myRA to RCH. RCH offers other investment options into which you can move your funds after your RCH account is open.

No account maintenance fees for two years: For the first two years after RCH opens your account, you will not have to pay account maintenance fees. If you choose to keep your RCH account beyond two years, you will be responsible for fees charged by RCH at that time. Fees charged by RCH will be applied against your RCH account balance, meaning you will not be issued a bill.

No fees for two years to transfer or withdraw funds or close the RCH account: For the first two years after RCH opens your account, you will not have to pay fees if you wish to transfer funds to another Roth IRA or withdraw funds and have them sent to you. There also will be no fee during these two years for you to close your RCH account. If you choose to keep your account with RCH beyond two years, you will be responsible for the current fees charged by RCH at that time. At that point, fees charged by RCH will be paid through your RCH account balance, meaning you will not receive a bill.

No minimum or maximum balance or contribution (deposit) requirements: There will be no minimum balance or minimum contribution (deposit) requirements on your new RCH account. Furthermore—and unlike your myRA account—there will be no maximum balance limit on your new account. (myRA accounts were limited to a balance of $15,000.) However, the annual contribution limits that apply to all Roth IRAs will still apply. For more information on the Roth IRA limits, see myra.gov/roth-ira.

After the upcoming transition of your funds from your myRA account to a new Roth IRA at RCH, your funds will no longer remain in an investment issued by the Treasury, and Comerica Bank (the current Treasury-designated custodian) will no longer be custodian of your account.